Abstract (english)

The grappa, the Italian marc distillate and recognized Geographical Indication (GI), has evolved its image and its quality over time, becoming a quality product. Consumers can choose different varieties- aged, flavored, different bottle size and alcohol content. The producers have worked hard to change the product imagine, diversifying their production facilities and distribution channels. The channel of large-scale distribution, however, remains the main channel. This work, based on scanner data collected in the Italian supermarket chains, tries to explain empirically the supply structure that characterizes the grappa field in Italian Large Scale Distribution, to determine what are the explanatory variables (as for example the company name, the brand and the product qualitative characteristics) that affect the grappa market structure and quantify their impact. The grappa market in Large Distribution is a concentrated market in which a dozen companies producing more than 50% of grappa. The empirical results show that -in this channel -the grappa market is configured as a Cournot oligopoly, with a product perceived by consumers as homogeneous. The firm that dominates the market in the Large Scale Distribution produces a standard, low cost product and hence with a relatively lower price than in other channels. This could also mean that the consumption of grappa is still a cultural value rather than a hedonic value.

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